The Pakistan Tanners Association (Northern Zone) has said that unfair shift of burden of energy cost to the most industrious province is threatening leather export business along with other manufacturing industries in Punjab. PTA Chairman Mansoor Iqbal said leather exports are already facing a severe phase of decline in export business due to uncompetitive pricing and lack of level-playing field with neighbouring competitors. He said about 70 percent of leather and textiles are being produced and exported from Punjab.
The leather industry in Punjab is being offered with the highest rates of Re-gasified Liquid Natural Gas (RLNG) in Punjab. Due to its geographical presence in Punjab, the industry is paying Rs 1300 per MMBTU whereas the RLNG rate for other parts of the country is Rs 600 per MMBTU thus Punjab based industries are paying extra PKR 700 per MMBTU on the same commodity. He said industries in Punjab are also bearing an undue burden of electricity surcharge of Rs 3.60 per kwh. The government should consider to remove this surcharge and bring the power tariff to Rs 7.00 per kwh in Punjab, he added.
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